Arya.ag, the prominent agri-tech platform in India, has set ambitious goals for the fiscal year 2024 as it seeks to double its profit and achieve a remarkable 70% increase in revenue, aiming to reach Rs 500 crore ($66.9 million). The Noida-based startup, specializing in foodgrain storage and sale, is capitalizing on the surge in e-commerce sales and the fees generated from its services to farmers, positioning these factors as the primary drivers of its substantial growth. With a substantial presence serving over 660 farmer producer organizations and a burgeoning loan book nearing Rs 1,000 crore, Arya.ag manages warehouses covering an impressive 100 million square feet.
Mumbai, October 1, 2023: Arya.ag, the pioneering agri-tech platform based in Noida, India, is poised for substantial growth in the upcoming fiscal year 2024. The company anticipates not only doubling its profit but also achieving a substantial 70% boost in revenue, aiming to reach an impressive figure of Rs 500 crore ($66.9 million). Founded in 2013 by Prasanna Rao, Anand Chandra, and Sathyanathan Devarajan, Arya.ag has carved a unique niche for itself as the largest and only profitable agri-tech platform dedicated to foodgrain storage and sale.
The startup has garnered substantial backing from prominent funds such as Lightrock, Accion Quona Capital, Asia Impact Fund, and Omnivore Partners, which collectively own a 60% stake in the company, having invested a combined total of USD 65 million. The company also counts debt investors like Rabo Bank, HDFC Bank, and ICICI Bank among its supporters, having borrowed a significant Rs 980 crore to date.
Arya.ag’s optimism regarding its financial targets stems from the increasing prominence of e-commerce sales and the revenue generated from its services to farmers. While the majority of its current revenue is derived from storage and warehouse fees, the company envisions a shift toward a more substantial revenue model based on fees generated from grain sales on its platform. In the fiscal year 2023, the commission on sales amounted to Rs 40 crore, a figure that is expected to surpass Rs 100 crore in the current fiscal year. Arya.ag also foresees the value of grain sold on its platform doubling from Rs 3,000 crore in the previous fiscal year to at least Rs 6,000 crore in the current fiscal. Impressively, within the first five months of the current fiscal year, the platform’s sales value has already exceeded Rs 2,000 crore.
The startup’s core business, revolving around storage, achieved an aggregate value of Rs 20,000 crore last year. Arya.ag anticipates this figure to increase substantially, reaching Rs 27,000-28,000 crore in the current fiscal year. Arya.ag’s expansive reach encompasses over 660 farmer producer organizations (FPOs), boasting a membership of more than 7 lakh individual farmers spanning 21 states and 450 districts. Notably, the number of farmers utilizing the platform has already surged by 80,000 in the current fiscal year.
Arya.ag primarily deals with essential food grains such as wheat, paddy, soybeans, mustard, and pulses. Additionally, the platform extends its offerings to cotton, spices, pepper, clove, cardamom, and chillies. One of the key value propositions Arya.ag offers to farmers utilizing its platform is substantial benefits in the range of 10-30%. Furthermore, Arya.ag provides loans to FPOs as working capital at a competitive interest rate of 12.5%. The startup’s loan book was nearly Rs 1,000 crore in the fiscal year 2022, a significant leap from the preceding fiscal year’s figure of Rs 300 crore. Arya.ag projects the loan book to experience a further 80% surge, reaching Rs 1,800 crore by March of the following year. The company has also established co-lending partnerships with 27 banks, collectively disbursing loans worth Rs 9,000 crore to these FPOs.
Arya.ag’s innovative approach extends to charging a fee from banks for co-lending, an initiative that garnered an impressive income of Rs 120 crore in the fiscal year 2023. With its extensive reach, commitment to farmers, and astute business strategies, Arya.ag is well-poised to achieve its ambitious financial targets in the upcoming fiscal year.
As Arya.ag continues to expand its presence and enhance its offerings, its positive impact on India’s agricultural sector and the livelihoods of countless farmers becomes increasingly evident. The platform’s growth trajectory demonstrates the immense potential of technology-driven solutions in transforming the agriculture landscape in India. With its commitment to farmers, efficient services, and innovative approach, Arya.ag is set to make a significant contribution to the nation’s agricultural prosperity in the years to come.
